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Registration of auto finance co.

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This query is : Resolved

Nitesh Parmar (Querist)

14 September 2014 I want to start a auto finance co. and want to register it as private ltd. co., can i accept deposits form shareholder under this? if yes then can i accept it in cash? please provide the provisions.

and if i want to start a NBFC then what is the minimum fund requirement?

c.bakshi

c.bakshi (Expert)

14 September 2014 First, As per the provisions under Section 73 of New Companies Act, 2013 A private company cannot accept deposits from its shareholders othar than the following...
a. Banking Company
b. NBFC as covered under the definition of Reserve Bank of India, 1934 and must get itself registered with RBI before starts its operations
c. A housing finance company regd. with National Housing bank
d. and any company specified for the purpose by Central Govt. as per section 73(1) of the act.

and SECOND
As per RBI ACT, 1934 no NBFC can commence its operation without obtaining a certificate of Registration from RBI and having a net owned fund to Rs. 200 Lakhs w.e.f April 21, 1999 and has to create a reserve 25% of its profit every year and has to start its operation within 6 months of obtaining Certificate of Registration otherwise it is withdrawn

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